ROCHESTER, Minn., Feb. 14, 2014 (GLOBE NEWSWIRE) -- HMN Financial, Inc. (HMN or the Company) (Nasdaq:HMNF) today announced that the Office of the Comptroller of the Currency (the OCC) has terminated the supervisory agreement and the individual minimum capital requirement (IMCR) to which HMN's principal subsidiary, Home Federal Savings Bank (the Bank), was a party or was subject.
The Bank supervisory agreement, effective February 22, 2011, related primarily to the Bank's then existing financial performance and credit quality issues. Under the supervisory agreement, the Bank was required to submit periodic business plans and reports to the OCC and could not, without the prior consent of the OCC, declare or pay any cash dividends, increase its total assets during any quarter in excess of the amount of the net interest credited on deposit liabilities during the prior quarter, enter into any new contractual arrangement or renew or extend any existing arrangement related to compensation or benefits with any directors or officers, make any golden parachute payments, or enter into any significant contracts with a third party service provider. Effective December 31, 2011, the Bank was required to establish and maintain a core capital ratio at or above 8.50% under the IMCR, a level of capital greater than that generally required for a bank to be classified as "well-capitalized."
"We are pleased that the improvements in our financial results and capital position have allowed these agreements and restrictions to be terminated," said Brad Krehbiel, President of HMN. "We will continue to focus our efforts on improving the financial performance of our core banking operations."The Company continues to be subject to a supervisory agreement with its primary regulator, the Federal Reserve Board. General Information HMN Financial, Inc. and Home Federal Savings Bank are headquartered in Rochester, Minnesota. Home Federal Savings Bank operates eight full service offices in Minnesota located in Albert Lea, Austin, Eagan, La Crescent, Rochester (2), Spring Valley and Winona; one full service office in Marshalltown, Iowa; one loan origination office in Sartell, Minnesota; and two Private Banking offices in Rochester, Minnesota.